The Savvy Entrepreneurial Firm Feature for Chapter 4 Focuses on Three

question 19

Multiple Choice

The Savvy Entrepreneurial Firm feature for Chapter 4 focuses on three companies: Box.net, Pixability, and Groupon. The overarching point of the feature is:

• A) most business plan require major changes after the business is launched and the founder's start getting customer feedback
• B) the degree to which business plans pan out as their founders envisioned varies
• C) most business plans require only minor changes after the business is launched and the founders start getting customer feedback
• D) the most effective business plans take four to eight weeks to complete
• E) most business plans are quickly discarded after the business is launched

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Definitions:

Days' Sales in Inventory

A financial ratio that indicates the average time in days that a company takes to turn its inventory into sales.

Ending Inventory

The overall value of products for sale at the close of a fiscal period.

Cost of Goods Sold

Directly associated expenditures for producing the goods a business sells, including the cost of materials and labor.

Average Total Asset

A measure used to calculate the average value of a company's assets over a specific period, often used in profitability and efficiency ratios.